E473 - Why Smart Investors Intentionally Lose Money

Why Smart Investors Intentionally Lose Money

Warren Buffett walked away from more good-looking deals than most investors ever see — on purpose. This episode digs into why the sharpest investors are willing to "lose" the deal, the rally, or the hype cycle rather than risk their principal on a bet that isn't cheap enough. We break down Buffett's margin of safety (his own bridge analogy: you don't build a bridge rated for exactly your truck's weight — you build in room for what you didn't see coming), why "price is what you pay, value is what you get" changes how...